6/24/15. The Color. of Money. The Money Pit. School Boards = Prisoners of Information

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1 OR The Color of Money The Money Pit School Boards = Prisoners of Information 1

2 60% = Different Degrees of FrustraCon 20% Don t Really Care 20% MSTA Successful Teacher s Fund Dollar Value Modifier Capital Projects Fund Debt Service Fund Hold Harmless State Adequacy Target FoundaCon Formula 2

3 Where Does $ for District Come From? Title 1 Special EducaCon Property Tax Prop C Formula Money Trust Fund Foundation Formula Weighted ADA X State Adequacy Target X Dollar Value Modifier - Local Effort = State Funding 3

4 6/24/15 Biggest Drivers in Formula Regular Term ADA Summer School ADA Free and Reduced Price Lunch Students Weighted ADA + 25% Special EducaCon Students Weighted ADA + 75% Limited English Proficient Students Weighted ADA + 60% Formula Payment Weighted ADA State Adequacy Target The amount the state says it should take to educate a child 4

5 Dollar Value Modifier Could be considered as a cost of living adjustment in the formula Calculated on a county basis unless the school district falls in a micropolitan or metropolitan area The range is from to = School District s Property Tax + Financial Institutions Tax + In Lieu of Tax + Fines + M&M Tax + State Assessed Tax + ½ of Prop C Tax Every year, this amount stays constant except for decreases in assessed valuation and increases in fine collections DESE calculates how much money you should get to educate every child and they subtract any local tax money off of that. A district with high assessed valuation gets very little state money and vice versa. 5

6 FUND 1 Used for all expenditures EXCEPT: FUND 2 Only used for: Teacher s Fund Salaries FUND 3 Money that was borrowed to build buildings, buy buses, etc. Only used when the public has voted to approve a specific tax levy for these purposes. 6

7 USED FOR MAJOR PURCHASES WITH A VALUE OF, AND THAT IS EXPECTED TO LAST FOR AT LEAST ONE YEAR. FUND 4 Capital Projects Fund (I.E. BUILDING RENOVATIONS, SCHOOL BUSES, TECHNOLOGY UPGRADES) Fund Transfer Rules 1. District may transfer money out of Fund 1 to Fund 2 at any time. 2. District may transfer money out of Fund 1 to Fund 4 at any time (as long as it is noted in the minutes what the funds are intended for) 3. District may NOT transfer out of Funds 2, 3, or 4 except to remove remaining funds after the completion of a bond issue. Once in these funds, they are stuck! Why does a district NEED a Balance? Avoid tax-anticipation borrowing (cash flow) Cover Unexpected Costs Cover Anticipated Projects (Fund 4) Cover Revenue Shortfalls 7

8 Varies By size Of district. What is a SAFE Balance? Fund 4 Balances Need to be sufficient to support any longterm facility plans. Larger districts might be safe with 10% of annual expenditures on hand at the end of the year. Smaller districts might want a larger % of expenditures on hand. 20%-25% might be more realistic. Make sure district can always meet two months expenditures Even if your district has no money now In the long run, you will be more successful if you have the same people on the committee year after year BECAUSE: Building relationships and culture takes time You could negocate for other good benefits besides salary It Develops a higher degree of credibility ( if it s the right people) 8

9 Meet & Confer Missouri Law states that schools must meet and confer with representatives for the employees regarding salary and benefit changes. No ramifications for non-compliance, but you still need to push (No Teeth in the law) Board policy may designate which group that the district plans to discuss these issues with. Collective bargaining Some school districts have added a section to their School Board Policy which governs provisions for Collective Bargaining with employees in their district, instead of the meet and confer section of Missouri Law. In these districts, the salary negotiations process may be governed by Board policy or the collective Bargaining Agreement. MSTA s Field Rep. with the most experience dealing with these schools is Charles Brooks (cbrooks@msta.org) Get input from administracon for Cming of decisions and board accon 9

10 Areas of Concern Regarding Salaries Base, Experience, 5 years, Extra DuCes, etc. Areas of Concern Regarding Benefits Health Insurance, % Paid by Board, Number of Sick/Personal Leave Days, Pay for Unused Leave, etc. Preliminary Meeting with Administration Where is the money (by fund)? Is the district deficit spending? If so, what is the plan to stop? From recrement of staff? EliminaCon of Staff? EliminaCon of Programs You don t need names, just amount of projected savings RealisCc goal for future ending balances that school board and administracon would support? After Surveying Staff and Meeting with Administration: Analyze the most pressing needs Make a prioritized list of proposals of salary and benefit changes Submit list to administration for cost analysis 10

11 Prior to the Board PresentaCon Have a Final Meeting With Administration Be Knowledgeable Choose the Right Person for the Job Be professional be prepared 11

12 Thank you for the opportunity to speak today! These school districts are similar to us and have a salary schedule that looks like Thank you again! I propose a salary schedule for our district that looks like Points to Remember Keep your staff members informed This is not a short process It s for the long haul! If you surveyed other schools Share the results with them YOU MAY NEED THEIR HELP AGAIN IN THE FUTURE! Provide 12

13 6/24/15 District Financial Analysis te F ura Acc Con O a m r ict Info r distr you IF we get accurate informacon r FROM you district Financial Highlights For Your District Salary Cost Analysis What will your proposed salary increase cost the district??? Using your districts current Salary Schedule and Scattergram, we can figure this for you. 13

14 Mandy Henry Sid Doerhoff Roy Kramme October/ November Meet with administration to confirm deadlines Survey your staff for areas of most concern Meet as a committee to prioritize needs Survey area schools that compete with you for staff / Ask Administration for an estimate of funding that might be available for salary and benefit increases for the following year. Analyze survey results and prioritize your requests. Obtain a cost analysis of each proposed change Prior to March School Board Meeting: Submit changes to Board/ Administration 14